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Peel and coarsely chop the onion and garlic clove. Use a mortar ir a small blender to create a puree of the onion and garlic.
Add sugar, ground lemongrass, laos powder, coriander powder, cumin and turmeric to the mixture. If you use unsalted peanuts, you can also add a bit of salt.
Combine until the mixture is smooth and set aside.
Heat a dry skillet and cook the peanuts for a few minutes. Add the spice mix and cook on low heat for another few minutes, make sure to stir them so it won't create lumps.
Add the grated coconut along with the lime and bay leaves, if you're using a lemongrass stalk you can also add it now. Cook on medium-high heat until the coconut is beautiful brown.
Keep on stirring occasionally, it tends to burn quickly.
Let the seroendeng cool off completely and divide over jars. You can store this crispy coconut mixture for a very long time. If you open it, it will become less crispy so keep the lid on as much as possible.
Serve with a dish with rice, such as nasi, enjoy!